Bookkeeping is an essential aspect of running a small business. It involves keeping track of all the financial transactions, including income and expenses, to ensure the smooth functioning of the business. However, manual bookkeeping can be time-consuming and prone to human error. That’s where bookkeeping software comes in. With the advancement of technology, there are now various bookkeeping software options available for small businesses. In this article, we will compare seven of the best bookkeeping software for small businesses in the UK.
1. QuickBooks
QuickBooks is a popular bookkeeping software used by small businesses in the UK. It offers a range of features, including invoicing, expense tracking, and tax calculations. It also integrates with other business tools, such as PayPal and Shopify, making it easier to manage all aspects of your business in one place. QuickBooks also has a user-friendly interface, making it easy for non-accountants to use. It offers different pricing plans, starting from £6 per month, making it an affordable option for small businesses.
2. Xero
Xero is another popular bookkeeping software used by small businesses in the UK. It offers similar features to QuickBooks, such as invoicing and expense tracking. However, what sets Xero apart is its strong focus on collaboration. It allows multiple users to access and work on the same data simultaneously, making it ideal for businesses with a team. Xero also offers a mobile app, making it convenient to manage your finances on the go. Pricing plans start from £10 per month, making it a bit more expensive than QuickBooks but still affordable for small businesses.
3. Sage Business Cloud Accounting
Sage Business Cloud Accounting is a comprehensive bookkeeping software that offers features such as invoicing, expense tracking, and inventory management. It also has a budgeting and forecasting tool, which can be helpful for small businesses looking to plan and grow. Sage also offers a mobile app, making it easy to manage your finances on the go. However, it is a bit pricier than the previous two options, with plans starting from £12 per month.
4. FreeAgent
FreeAgent is a cloud-based bookkeeping software designed specifically for small businesses and freelancers. It offers features such as invoicing, expense tracking, and tax calculations. It also has a project management tool, making it ideal for businesses that work on multiple projects. FreeAgent also offers a mobile app and integrates with other business tools, such as PayPal and Stripe. Its pricing plans start from £9.50 per month, making it an affordable option for small businesses.
5. KashFlow
KashFlow is a user-friendly bookkeeping software that offers features such as invoicing, expense tracking, and tax calculations. It also has a cash flow forecasting tool, which can be helpful for small businesses looking to manage their finances better. KashFlow also offers a mobile app and integrates with other business tools, such as PayPal and GoCardless. Its pricing plans start from £8 per month, making it a cost-effective option for small businesses.
6. Zoho Books
Zoho Books is a cloud-based bookkeeping software that offers features such as invoicing, expense tracking, and inventory management. It also has a time tracking tool, making it ideal for businesses that charge by the hour. Zoho Books also offers a mobile app and integrates with other business tools, such as PayPal and Stripe. Its pricing plans start from £6 per month, making it an affordable option for small businesses.
7. Wave
Wave is a free bookkeeping software that offers features such as invoicing, expense tracking, and tax calculations. It also has a receipt scanning tool, making it easier to keep track of your expenses. However, it does not offer as many features as the other options on this list. It also does not have a mobile app, which can be a drawback for businesses that need to manage their finances on the go. Nevertheless, for small businesses on a tight budget, Wave can be a good option.
In conclusion, choosing the best bookkeeping software for your small business depends on your specific needs and budget. All the options mentioned above offer similar features, but some may have additional tools that can be beneficial for your business. It is essential to research and compare different software before making a decision. With the right bookkeeping software, you can save time, reduce errors, and have a better understanding of your business’s financial health. So, invest